State support for Russian dairy industry increases almost 1.5-fold in 2024, exceeding 80 bln rubles - deputy PM

MOSCOW. Jan 22 (Interfax) - The Russian government allocated over 80 billion rubles to support the dairy industry in 2024, a 1.5-fold increase compared to 2023, Deputy Prime Minister Dmitry Patrushev said at the 16th congress of the Union of Milk Producers in Moscow on Wednesday.

"Of course, there will always be those who are dissatisfied and claim that even 80 billion is not enough. But the facts speak for themselves: no other sector of the agro-industrial complex receives such support," Patrushev said.

At the same time, he acknowledged the role of the Agriculture Ministry, which "fights for industry funding," and the Finance Ministry which "meets them halfway and finds the money."

Speaking about concessional lending, Patrushev said that dairy production will be included in the list of priority areas starting in 2025. This will allow producers to attract new loans at lower interest rates.

The reimbursement rate for direct costs incurred when creating dairy facilities was increased to 30% last year, he said. "For regions that consistently increase milk production and have a strong feed base, the reimbursement rate has been raised to 42%," he said. "Overall, I once again emphasize that the dairy industry remains the most well-supported sector in terms of available support mechanisms."

Concessional lending remains a key tool for supporting farmers and processors, he said. "At the same time, it is clear that the state must allocate significant funds to fulfill previously assumed obligations," he said. In 2024, subsidies for concessional loans in the dairy sector nearly doubled, reaching 57 billion rubles.

"A draft government decree on allocating significant funds for continued concessional lending is in its final stages. The funds are indeed substantial, and a quarter of them will go to dairy farming. New loans will be available at an annual rate of 8.3%. We will continue to develop this system further," Patrushev said.

According to the Agriculture Ministry's calculations, Russian milk production is expected to increase to 38.5 million tonnes by 2030. Preliminary data indicates that production reached 34 million tonnes in 2024, which is 200,000 tonnes more than in 2023.